r^ l/o'j 



018 539 178 4 



Conservation Resources 
Lig-Free® Type I 



66th Congress, 1 HOUSE OF REPRESENTATIVES. I Document 

1st Se ssion. f 1 No. 87. 



OF WASTE PAPER IN GOVERNMENT SERVICE. 



' ■ - 


TS 1109 


.U6 


1919 


Copy 1 



LETTER 



THE SECRETARY OF COMMERCE, 

TRANSMITTING 

REPORT ON THE HANDLING AND DISPO SAL OF WASTE PAPER IN 
GOVERNMENT SERVICE, TOGETHER WITH CERTAIN COMMENTS 
THEREON FROM THE OFFICE OF THE PUBLIC PRINTER AND THE 
REPLY OF THE DEPARTMENT OF COMMERCE. 



June 9. 1919. — Referred to the Committee on Printing and ordered to be printed. 



Depa:rtment of Commerce, 

Washmgton, June 6, 1919. 
My Dear Mr. Speaker: I submit herewith a report on the hand- 
ling and disposal of waste paper in Government service, together with 
certain comments thereon from the Office of the Public Printer and a 
reply thereto from this department, for your consideration. 
Very truly, yours, 

William C. Redfield, Secretary. 
The Speaker, 

House of Representatives, 

Washington, D. C. 



Department of Commerce, 
Waste-Reclamation Service, 

^Vashington, May 2, 1919. 

A Report on the Handling and Disposal of Waste Paper in 
Government Service. 

I submit herewith the result of a recent inquiry, preliminary in 
nature, covering the present system of collection, sorting, and sale 
of waste paper in Government service. This investigation, which 
was undertaken at your direction, covers the present system of col- 



2 DISPOSAL OF WASTE PAPER IN GOVEEISTMENT SERVICE. 

lection and sale, indicates the advantages of the present system over 
the previous system, as well as pointing out the defects of the system 
now in effect, together with recommendations looking to the further 
standardization of the work. The information upon which this report 
is made was furnished this office through the courtesy of the Public 
Printer. 

The present system of handling the waste paper in Government 
service was inaugurated May 17, 1913, following an investigation made 
by the President's Commission on Economy and Efficiency, which 
was published as a Government document under the date of Febru- 
ary 24, 1913, as Senate Document No. 1105 (Sixty-third Congress, 
third session). A system of centralized collection, sorting, and sale 
of all waste paper from the Federal departments located in the Dis- 
trict of Columbia was put in effect, and the Office of the Public 
Printer was directed to assume charge of this function. 

The President's Commission on Economy and Efficiency found 
that, due to the then existing system of disposal, there had been a 
loss of revenue to the Government, and it was argued that by plac- 
ing this function under the direction and. control of one office the 
cost of the service could be greatly reduced and the revenue greatly 
increased. The commission recommended that inasmuch as 50 per 
cent of the waste paper in Government service was produced at the 
Government Printing Office the Public Printer be designated as the 
agency to perform this function. 

A study of the financial returns for the year 1918 proves 
that the contention of the commission was correct. The service 
has been performed with a decrease in cost and with a large 
increase in revenue, and this increase in revenue has been 
made irrespective of the fact that the increase in volume of waste 
paper has been relatively small. The amount of w=aste paper pro- 
duced in 1912 was estimated to be 5'712.55 net tons. The Govern- 
ment Printing Office collected, sorted, and sold 6,873.11 net tons last 
year, or an increase of 20 per cent in volume. The President's Com- 
mission on Economy and Efficiency estimated that the waste paper 
sold by departments in 1912 made a return of $62,527.95; the contract 
for the fiscal year 1918 yielded a return to the Government of $141,- 
355.89, which is an increase of 126 per cent in the gross revenue. 

This increase in gross revenue can not be entirely attributed to 
the benefits accruing from a centralized system of collection, sorting, 
and sale. The prices for paper stock have shown an upward tendency 
during the last few years, and were the previous sj^stem still in effect 
the returns for 19i8 would certainly have been greater than the 
amount secured for the waste paper which was sold under the 1912 
price. Although the bids for the disposal of this material were sub- 
mitted in the spring of 1918, and as a result were not the market 
quotations of the fall of the year 1918, when prices were running 
much higher, nevertheless the higher price level of that period was 
reflected in the bids, and as a result the Government secured a larger 
return for its waste {paper in 1918 than could (have been secured 
under the price prevailing in 1912. Therefore in making this com- 
parison of the two years the element of price must be borne in mind 
when considering the advantages which accrued under a centralized 
system of collecting, sorting, and sale. 

n, ©^ *• 

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9^^ (a iTfi 



I 



DISPOSAL OF WASTE PAPER IIsT GOVEENMENT SERVICE. 3 

In endeavoring to ascertain the net revenue which was secured 
under the centraHzed system of deahng with this material it has been 
necessary to make an estimation of the cost of operation, as the report 
of the PubHc Printer for the fiscal year 1918 does not contain a 
financial statement covering the cost of operation and the gross 
revenue of this function of his office. Therefore the statement of 
cost of operation, which is used as a basis of estimate tliroughout 
this report, is an estimation made by this office and is based upon 
the statement which was furnished by the Public Printer as to the 
number of employees, hourly rate of wages, and the number of trucks 
operated. However, this estimated cost does not include interest 
charges on the investment or depreciation on the baling equipment 
nor any element of overhead. This office was advised by the Public 
Printer that 18 men are employed to receive and sort the waste paper, 
some of them being worked on a night shift. Therefore this office 
estimated that 10 men were necessary to handle the waste paper on 
the day shift and 8 men on the night shift. The daily rate of pay is 
35 cents an hour. The pay for the night shift is 41 cents an hour. 
Consequently the cost of receiving, sorting, and baling will amount 
to S54.24 a day. The cost for the labor employed on the trucks will 
amount to $11.60 a day. It has been estimated by this office that 
the cost of operating the trucks, excluding labor but including interest 
and depreciation, will amount to $20.40 a day per truck. This esti- 
mation was based upon the figures which have been compiled by the 
highways transport committee of the Council of National Defense. 
The total labor cost for the year will amount to $19,752. The cost 
of operating two 5-ton trucks for a year (300 work days) will amount 
to $12,240, or a total cost for operating this service of $31,992. 

The estimated cost of operating in 1912 was $32,742.43. Despite 
the increase in tonnage, there was a decrease of about 2 per cent in 
the cost of operation for the year 1918. In 1912 the cost of operation 
was 51 per cent of the gross revenue; in 1918 it was but 23 per cent. 
The net revenue in 1912 was $29,785.53. In 1918 it was $89,478.37, 
or an increase of 233 per cent in net revenue in 1918. 

The following table, making a comparison of the cost and revenue 
on a tonnage basis for the two periods, reveals the saving which has 
been effected by the adoption of the plan formulated by the Presi- 
dent's Commission on Economy and Efficiency: 



Cost of operation per ton . . 
Net revenue per ton ... 

Gross return per ton. 



$.5. 73 
5.21 



10.94 



$4. 65 
15.91 



20.56 



Despite this remarkable showing, as indicated in the financial state- 
ments and the comparisons which have been made between the two 
periods, the Government is not securing the maximum return for this 
material, nor is it operating at the minimum cost. The financial 
statement but represents the potentiality which lies in this system of 
centralized control. There are a number of weaknesses which must 
be remedied if this Government service is to be developed to the 
highest point of efficiency. However, in pointing out the weaknesses 



4 DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 

which now exist it is not the desire of this office to criticize this 
function of the Office of the Public Printer. The PubUc Printer 
deserves the highest praise for the efficient manner in which he has 
handled this function, lacking as he does proper equipment, adequate 
space, and a trained staff. Despite all the present handicaps he has 
been enabled to handle this function so that he could make a large 
return to the Government. It is now necessary to assist his office in 
removing those obstacles which prevent his operating at the highest 
point of efficiency. 

THE CAUSATION OF THE PRESENT INEFFICIENCIES. 
THE ASv«?ORTING OP THE MATERIAL. 

Space is absolutely essential if the Public Printer is to be enabled 
to properly assort the waste paper in Government service into the 
proper trade classifications. Operating in but two rooms, with a 
combined floor space of only 1,190 square feet, it is not surprising 
that the gradings do not conform to the trade specifications. It is 
indeed surprising that a preliminary sorting approximating the 
trade specifications could be made. Commercial firms, handling 
such a flow of material, would be operating with a floor space of 10 
or 20 times the amount which is now allotted to this function. 

As a result of this situation, the Government waste paper is sold 
under specifications which do not conform to the waste trade classi- 
fications. A few examples can be cited to illustrate this situation: 
Under the Government schedule, class 1 is specified to consist of 
shavings from blanks and blank books. Such material would be 
sold on the waste market as No. 1 hard white shavings were it prop- 
erly sorted, but due to the fact that there is a small percentage of 
colored shavings included in this Government schedule, and which 
could be readily assorted and classified in their respective grades, it 
is necessary for the Public Printer to accept a lower price for this 
material than could be secured if it were possible to sell the material 
properly assorted. 

Class 2 is a mixture of No. 1 soft whites and No. 2 shavings. The 
amount of No. 2 shavings is relatively small, due to the fact that 
but little calendered stock or coated material is used in Government 
printing. In addition to these mixtures of Nos. 1 and 2 shavings, 
there is a small amount of foreign matter which, if properly sorted, 
would grade in another classification. The Public Printer, due to 
the fact that it is impossible to make the proper sorting, is forced to 
sell this material at a lower price than could be secured for it if it 
were properly classified. 

Class No. 3, which constitutes about 16 per cent of the total vol- 
ume of waste paper handled, consists of shavings from book paper, 
colored and white, strawboard, trimmings and other binder-board 
trimmings. In order to get this material into its proper classifica- 
tions sorting must be done. Due to the lack of facilities, this 
material is being sold at prices much lower than the amount which 
could be received for the several grades if sold in their proper classes. 

Class No. 5, which is described as manila clippings in the Govern- 
ment schedule, is in reality a higher grade of material than the trade 
manila. Manila in the trade refers to color not to quality. It is 



DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 5 

sulphite stock colored to represent rope stock. The Government 
manila is of far better grade. Yet, due to the fact that cheaper 
grades of manila are included, the Government price is lower on the 
average than the trade quotations for manila clippings. 

Class No. 7 is in reality high-grade writings and could classify- 
either in ledger or book stock classes except for the fact that the 
material consists of internal-revenue-stamp stubs, which must be 
handled in a special way. At present the material is taken to the 
car under guard, is forwarded to the consuming plant in a sealed 
car, and is immediately destroyed under guaranty. Foreign Gov- 
ernments destroy such paper by means of a shredder, and a number 
of commercial concerns here and abroad follow the same procedure 
in handling confidential paper. By installing a shredder at the 
central plant, this material could be prepared for the market with- 
out danger, and a slightly higher price received for it as a high-grade 
WTiting. 

The present system not only fails to place the material in proper 
trade groups, but it also is responsible for a great waste of human 
effort, as the paper is handled and rehandled a number of times. 
Under the present arrangements a preliminary sorting is made by 
the employees of the several bureaus collecting the paper through- 
out the buildings under their jurisdiction. It is rehandled at the 
plant where a semisorting is made. The contractor who purchases 
the material in this shape rarely has the facilities to handle such a 
flow and ships it in its present shape to a large "packing house," 
where it receives its final grading. The graded stock may then be 
sold by the "packing house" to a mill either located in Washington 
or in the territory adjacent thereto. It is the understanding of this 
office that the paper is now moved to Kalamazoo, Mich., for its final 
sorting. The packers of that center sell on the eastern and central 
market, and there is nothing to guaranty that this paper, which has 
been handled and rehandled in the District and shipped auch a 
long distance for its final grading, will not be consumed by a mill 
either in the District or in adjacent territory. 

The present cost for this so-caUed assorting is now averaging $2.36 
a ton. The Commission on Economy and Efficiency estimated that 
a ton of paper could be assorted at a cost of $1.25. This estimate 
was based upon the labor prices prevailing in 1912. The upward 
tendency of wages has slightly influenced the waste trade, and 
dealers estimate that it now costs about $1.75 a ton to assort this 
paper. If these estimates are coiTect, the loss through the excessive 
assorting costs now amounts to at least $4,192.59. 

THE PRESENT SYSTEM OF SALES. 

Under the present system of sales, the Government is not onl}- 
losing monev through its failure to properly assort the paper so that 
it can be sold under its trade classifications, but it is also suffering 
a loss due to the present system of contracting for the sale of the 
material on a yearly basis. The prices for waste paper may fluctuate 
greatly during a year. This was especiaUy true of trade conditions 
during the year 1918. Paper stock in January of 1918 was being 
sold at a price level about equal to the prices in 1916 and 1917. By 
August of that year new high-water marks in waste-paper prices had 



6 DISPOSAL OF WASTE PAPER IjSJ" GOVERNMENT SERVICE. 

been established. The Government could not secure the benefit of 
these fluctuations due to the fact that the contract had been awarded 
on bids which were filed in the spring of the year 1918, when the 
upward tendency of prices was but revealing itself. Had the Gov^- 
ernment sold its waste paper by carload lot on the monthly quota- 
tions for last year, a return possibly 61 per cent greater would have 
been secured. 

However, in making this estimation it must be borne in mind that 
this office has no data upon which to determine the amount of waste 
paper of the several trade classifications which could be secured 
under proper assorting. Therefore, in making the estimation of the 
loss it has been necessary to assume that the amount of waste paper 
sold under the Government classification was equal to the amount 
under the trade classification. Such an assumption is obviously 
incorrect, because in assorting class 1, to secure the No. 1 hard white 
shavings, at least 2,000 pounds would be found to be colored book 
stock, or material of a lesser value. What is true in the case of 
class 1 is also true in the case of class 3. There it has been assumed 
that all of this class was No. 1 hard and No. 1 soft shavings, and the 
trade quotations for No. 1 soft have been used as a basis for estima- 
tion of the loss. In reality, class 3 may contain 4,000 or 5,000 
pounds of No. 1 hards, 2,000 or 3,000 pounds of No. 2 shavings, 
3,000 or 4,000 pounds of colored shavings, and several thousand 
pounds of strawboard trimmings. However, it was felt that by 
using the trade quotations for No. 1 soft, which is of less value than 
No. 1 hard, that an approximation of the loss could be ascertained; 
and these figures are given as an indication of the loss and not the 
actual loss. Therefore, the tables which are attached hereto, dealing 
with this matter, must be considered estimates and not a true state- 
ment of the actual condition. 

Table A is based upon the statement supplied through the Office 
of the Public Printer, and shows the grades, the amount of paper in 
each grade, and the contractual price for each grade. 

Table B is compiled from the monthly quotations of the Waste 
Trade Journal, and covers the chief items of waste-paper stock. 

Table C is based upon Tables A and B. In developing this table it 
has been upon the assumption that the amount of waste paper under 
the Government schedule when sorted would be the same amount 
under the. trade schedule, and the loss per pound was ascertained by 
comparing the contractual price and the average yearly price for 
each grade and multiplying by the quantity of waste paper in each 
classification. 

In developing Table D a similar estimation, open to the same criti- 
cism, was made. It was further necessary to assume that the monthly 
turnovers of material were equal. The total volume handled yearly 
was divided by 12, and this was assumed to be the monthly turnover 
for each grade. The difi^erence between the Government price for 
each grade and the monthly quotations for the grade which it ap- 
proximated showed either a loss or gain to the Government. By 
multiplying this by the assumed monthly turnover an estimation of 
the monthly gain or loss for each grade was made. 

Estimates though these tables m.a,j be, they will serve to indicate 
wherein the weakness of the present sales system lies. By comparing 
Tables A, C, and D it will be possible to construct a table which will 



DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 7 

reveal at a glance that the Government is suffering the loss in those 
items which are poorly sorted and which constitute the greater bulk 
of the material handled, and for which there is the greatest market 
demand. 



Government schedule. 


Percentage 
of volume. 


Percentage 
of revenue. 


Percentage 
of loss. 


Class 3 


15.85 
11.67 
46.11 
1.77 
2.92 
21.68 


20.04 
23.84 
24.66 
3.88 
2.84 
24.74 


52. 685 


Class 2 . 


24.017 


Class 6 


14. 592 


Claffs 1 . . . . 


5.746 


Class 10 


1.847 


All other classes 


1.113 








100. 00 


100. 00 


100.00 



This table not only reveals the weakness of the sorting system, 
but the sales system as well. Class 3, which is in a large measure a 
mix:ture of the various shavings, contributed half of the market loss. 
Class 2, which is believed to be practically all soft white shavings, 
contributed nearly one-fourth of the loss. While the three classes 
of shavings were responsible for over 82 per cent of the loss, they 
constituted but approximately 30 per cent of the volume handled. 
The five classes which comprise about 80 per cent of the total vol- 
ume and which contributed 75 per cent of the revenue, were respon- 
sible for 99 per cent of the loss. 

Irrespective of the fact that the figures upon which this table is 
based are estimates, they reveal the elements of weakness in the 
present system of handling, which can not be remedied to any ap- 
preciable degree as long as the Public Printer is forced to operate in 
inadequate quarters and to sell under a contract which guarantees to 
remove the material daily. 



THE SYSTEM OF COLLECTION. 



The Public Prmter reports that it requires the full-time operation 
of two 5-ton trucks a day in order to collect the material from bureaus 
and departments other than his own. The cost of operating the 
trucks, including labor and depreciation, was estimated by this office 
to be $15,720 per annum. The cost of collection of the tonnage 
amounted to 11 per cent of the gross sales. 

The Department of Commerce made a study of cartage costs in 
the city of Washington in the year 1917. This study covered the 
delivery cost of 128 establishments of various kmds. The cost of 
delivery for all of the establishments was but 6.2 per cent of the 
gross sales. Merchandise was delivered for an average cost of 1.8 
per cent of the gross sales; food products for 7.4 per cent; whereas 
the seasonal commodities were delivered at a cost of 20 per cent of 
the gross sales. 

This comparison would indicate that the cost of collection of waste 
paper is far too high, and that steps should be taken to ascertain the 
cause of this excessive cost. The cost of collection, assummg that 
all tonnage is moved, is averaging $2.29 per ton. Tlie waste dealers 
of this center are moving their material at about $1.50 a ton. It 
would seem that there is inefficiency and lost motion at some stage in 
connection with this function of the Office of the Public Printer. 



8 DISPOSAL OF WASTE PAPER IE" GOVERNMENT SERVICE. 

However, all tonnage is not hauled; a certain amount of this paper 
is produced in the Government Printmg Office. It was estimated by 
the Commission on Economy and Efficiency that 50 per cent of all 
the waste paper in the Government service originated in the Govern- 
ment Printing Office. If that condition still prevails, the Govern- 
ment Printing Office would be forced to haul 3,436 tons of paper a 
year, at a cost approximating $5 a ton. However, a study of Table 
A will give the impression that a much larger per cent of waste paper 
originated in the Office of the Public Printer. The ''shavings" alone 
amounted to approximately 30 per cent of the total turnover, the 
printing waste nearly 16 per cent, and the wrapping waste 46.11 per 
cent. If these five classes are assumed to originate in that office, 
then at least 91 per cent of the waste paper in Government service 
requires no hauling prior to its assorting. If this condition is the 
true state of affairs, then but 556 tons would require hauling, which 
would increase the tonnage cost for collection to $28 a ton. 

Two 5-ton trucks, making but one trip a day, should logically 
handle 10 tons of paper a day, or, in a 300-workday year at least 
3,000 tons of paper a year. At the present time they are operating 
full time to collect but 18 per cent of their capacity. 

The Commission on Economy and Efficiency estimated that the 
waste paper originating outside of the Government Prmtmg Office 
could be hauled for $3,000 per annum. If 50 per cent of the esti- 
mated tonnage of that year, or approximately 2,756 tons, could be 
handled for that sum — which was about $1.12 per ton — it is self- 
evident that either the estimation of the commission was entirely too 
low or the present cost of this service is excessive, either assuming 
that 50 per cent or 91 per cent of the waste paper must be hauled 
from the bureaus and departments located in the District of Columbia. 

If $2 a ton for cartage is a fair margin for this service, and' 50 per cent 
of the paper originates in points outside of the Office of the Public 
Printer, the cost of this service should not have exceeded $6,872. 
This is $6,552 less than the estimated annual cost for collection, or a 
sum about equal to the amount which is estimated by the highways 
trasport committee as the annual cost of operation, maintenance, and 
depreciation of one 5-ton truck. It would seem that it can be safely 
assumed that the collecting service of the Office of the Public Printer 
should be reorganized so that this service could be performed by one 
truck alone. The loss resultmg from the mefficient hauling is of 
course but an estunate. However, the cost per ton for cartage should 
not exceed $2 a ton; in fact it should be closer to $1.75 a ton. If 50 
per cent of the paper had to be hauled during last year, there was a 
loss of about $3 a ton, or an annual loss of $10,298; if 91 per cent was 
moved, there was a loss approximating $26 a ton, or an annual loss 
of $14,465. 

The loss through the present sales system was estimated to be 
$86,869. The loss through the faulty sorting and collection system 
amoimted to $14,490.59, under the first assumption, and $18,657 
under the second. Therefore, the annual loss would range from 
about $101,395 to $105,525. 



DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 9 

THE NECESSITY FOR A PROPER BUDGET SYSTEM. 

In thie amiual report of the Public Printer for the year 1918, the 
(question of the burden which has been thrown upon that department 
is raised, and it is pointed out that the amount of waste paper col- 
lected from the departments and bureaus, baled in the Office of the 
Public Printer, and then sold, is increasing rapidly. It has been 
necessary for the Public Printer to install additional equipment for 
baling. There has been an increase in labor cost, and it takes the 
full time for one or more large trucks to handle the material. 

The Public Printer further points out that all this expense, under 
the present system, is a part of the cost of operating in the Govern- 
ment Printing Office; whereas it should be carried by the various 
bureaus and departments. The Public Printer recommends that he 
be granted authority to make a monthly charge for service on the 
bass of cost per bag collected. 

This criticism on the part of the Public Printer reveals one of the 
fundamental weaknesses of the present system of dealing with this 
particular function of the Government. When the Public Printer 
was directed to assume charge of this function no arrangements 
were made for carrying the expense of the operation, and the Public 
Printer was forced to expend his general appropriation, which was 
made for carrying on the established functions of his office, for a 
service not primarily a function of his department. Under the 
present situation the cost of this operation must be included in the 
expense of the printing function, which has a tendency to increase 
the cost of printing to all departments, and the proceeds of the 
sales are deposited in the United States Treasury under the caption 
of ''Miscellaneous receipts, proceeds of sale of Government property," 
and the same taken up on the books of the Treasury as if the funds 
deposited were net rather than gross proceeds. Nor will the sugges- 
tion of the Public Printer adec^uately deal with the situation, or 
remove the fundamental defects of the present system of dealing 
with the material. To charge the bureaus and departments for a 
service rendered, and from which they derive no benefit, is but to 
beg the issue. It is absolutely essential to reorganize the entire 
system not only of sorting, collection, and sales, but also of the 
budget as well. Therefore, it is suggested that this matter be called 
to the attention of competent authority, with the recommednation 
that a special appropriation be granted to the Public Printer, provid- 
ing that he is to continue to be in charge of this function, for the 
maintenance of this service; and that all proceeds of the sale of the 
waste paper be deposited to the credit of the special appropriation 
for the maintenance of this service, the net proceeds to be trans- 
ferred at the end of the fiscal year to the "Miscellaneous receipts" 
fund. By so doing there will be an adequate statement as to the 
cost of operation, as well as a statement as to the net proceeds. 
By adopting such a system the Government will be assured that it 
will not be throwing an unjust burden on any department; nor will 
it be encouraging the destruction of material rather than its conserva- 
tion, which might be the logical outcome if the system which is 
suggested by the Public Printer were adopted as a basis for meeting 
the expense of this service. 



10 



DISPOSAL, OF WASTE PAPER IN GOVERNMENT SERVICE. 



RECOMMENDATIONS CONCERNING REORGANIZATION. 

If the Government is to secure the greatest possible return for the 
waste paper in Government service, and at the same time develop 
the most economical and efficient system for collection, sorting, and 
sale of this material, it is imperative that steps be taken to reorganize 
the present service. Three plans, covering a suggested reorganiza- 
tion, are submitted for consideration. The first plan is based upon 
the concept that the Government can secure the maximum return 
without the element of competition, and therefore considers this 
function as an integral part of the work of the Office of the Public 
Printer. The second and third plans are based upon the concept 
that the greatest return can not be secured unless the element of 
competition is injected, and is based upon the theory that the function 
should be vested in some other organization rather than in the Office 
of the Public Printer. 

PLAN 1. 

Expansion of the present facilities of the Public Printer. — Additional 
and adequate facilities must be secured if the Public Printer is to 
perform this function to the best interests of the Government. 
Additional space can not be allotted to this function in the buildings 
now under the control of the Public Printer. It will be necessary for 
him to secure authority to lease a building which is adapted to the 
needs of this particular function. 

The building should be of a two-story type so that the material 
can be sorted in the upper portion thereof, either over a conveyer or a 
sorting table, and the sorted material dropped through chutes to the 
balers below, the baled material to be held in separate compartments 
until a carload lot of any given grade is secured. 

The warehousing space can . be estimated by ascertaining the 
monthly movement of carload lots of the several grades of paper 
secured through the assorting. In order to arrive at this estimate, 
the following table has been constructed, in the development of 
which 24,000 pounds of paper were used as a basis of measuring the 
carrying capacity of the standard box car: 



Government schedule. 


Number 

of 
carloads 

per 
annum. 


Number 

of 
carloads 

per 
month. 


Class 1 


11 

67 
91 
91 

Tff 

264 

TTSff 
31 

tV 
17 


7A 


Class 2 


Class 3 


Class 4 


Class 5 


Class 6 


22 


Class 7 


sVs 


Class 8 


2A 
A 


Class9 .. . . 


Class 10 


1-A 


Class 11 


Class 12 


T2TS 




U? 



DISPOSAL, OF WASTE PAPER IN GOVERNMENT SERVICE. 11 

It will be noted that certain grades have had a very rapid turnover, 
while carload lots of other grades accumulate slowly. However, this 
situation is one which affects the sales element of this function rather 
than the storage feature. Compartments of sufficient storage volume 
to approximate a carload lot can be assigned to certain grades, and 
these grades moved from the compartments to the car as soon as the 
accumulation warrants. Certain other grades can be sold in mixed 
carload lots, no guarantee to be made as to the amount of each grade 
to be delivered in any designated shipment. By following this plan 
the amount of necessary storage space can be approximated with ease. 

Six grades accumulate with rapidity. Individual storage bins or 
compartments must be assigned to them. Class 1, or the assumed 
hard white shavings class, although it does not accumulate as rapidly 
as the other "shaving" classes, should be held in a separate storage 
bin, as there will be a carload lot moved every five weeks. The 
remaining five grades should be sorted into their classes, baled, and 
each bag tagged to designate its class and held in a mixed-storage 
compartment and sold by carload lot. It might be possible, in con- 
junction with these five classes, to use a contract system for disposal. 

By following this system it will require at least eight storage com- 
partments. The cubical capacity of a box car is 2,400 cmbic feet; 
therefore tlie cubical capacity of this storage space would be eight 
times the capacity of a box car, or 19,200 cubic feet. Baling material 
can be readily tiered either by hand or by machine; therefore the 
storage room could be at least 10 to 12 feet in .height. A building, 
64 by 30 by 10 feet would have the minimum storage requirements. 
However, an allowance must be made for areaways, baling space, 
etc. Therefore, it is estimated that a building 100 by 30 by 10 feet 
would prove to be c{uite aderiuate for this operation. 

The sales system, as well as the system of sorting and storage, 
should be reorganized. It has been shown that there is a heavy 
monthly movement of cars. This movement will approximate 45 
cars a month, and 82 per cent of this monthly car movement will 
contain but five classes of material, and these grades have been 
demonstrated to be the cause of 99 per cent of the estimated loss to 
the Government under its present system of disposal. Therefore, the 
sales system should be reorganized so that these grades at least will 
be sold by carload lots, the projiosals for their sale to be circularized 
each month. These proposals should name the class of material and 
the number of r-arloads of each to be received in a special time. By 
following this procedure it will be possible for the Public Printer to 
secure the benefit of the fluctuations of the market and to handle 
this material in accordaur-e with the established trade custom. 

Classes 4 and 8 under the Government schedule, which accumulate 
with a fair degree of rapidity, should doubtless be sold under the 
monthly proposal plan. The amount of loss to the Government 
under the present sj^stem is negligible, and it is doubtful if the 
monthly proposal plan will result in much if any increase in revenue 
to the Government. However, this system of sale, operated in 
conjunction with the sale of the five classes of material which ought 
to be handled by this method, will not increase the clerical work of 
the Ofi^ice of the Public Printer to any material degree. Therefore, 
it is suggested that these two classes be handled under the monthly 
proposal carload lot delivery system. 



12 DISPOSAL, OF WASTE PAPEK IlJf GOVERNMENT SERVICE. 

The five remaining grades might be sold under the yearly contract 
system, the bids to be filed on the separate items, the material to be 
shipped in mixed carload lots, no shipment to contain a guaranteed 
amount of any specified grade included in the five grades falling under 
this system. 

These changes would eliminate the present inefficiencies of handling 
and sale. The question of the causation of the loss through the 
collective service can not be answered with the data on hand, and it 
is believed that it is necessary to conduct an intensive study of this 
question, which can only be done by maintaining a time study on 
each truck for some little period so that the causation of the present 
loss could be discovered and plans evolved to check this waste. 

Due to the fact that the Office of the Public Printer has no facilities 
for making a searching inquiry as to this function of his office, and 
inasmuch as it is necessary that a comprehensive study of the ele- 
ments of cost to commercial firms for this service should be made, 
it is recommended that this question be placed before competent 
authority for the necessary instructions to have your department 
conduct such an investigation covering this field of Government 
service. 

The Department of Commerce is vitally interested in the element 
of cost of preparing a basic material for the market. Therefore, it 
is the opinion of this office that such an investigation should logically 
be conducted by your department; and it is the further opinion of 
this office that this investigation could be conducted by this office 
without any additional cost to the Government, and that data 
could be secured which would assist the Public Printer in standard- 
izing his function. In case authority can be secured for such an 
investigation from the special session of Congress, which may be 
called in the near future, it is believed that this data can be compiled 
and submitted in a report to the next regular session of Congress, 
and that it will further standardize and develop the function of the 
Government which was put into operation as a basis of a report filed 
with Congress under date of February 24, 1913. 



Tlie utilization of prison labor. — This plan, as well as plan 3, con- 
templates the transfer of this function of the Public Printer to some 
other board or organization. It may be argued that this is not a 
function of the Public Printer, and that, therefore, it will be impos- 
sible to develop the work to the highest degree of efficiency unless a 
direct benefit to the division or office operating this service can be 
secured. 

Therefore, this plan has been evolved in order" to interject the 
element of gain as a means of securing the greatest efficiency, as well 
as offering a solution to the problem which may be facing the local 
authorities in dealing with the misdemeanant population. 

The utilization of prison labor in the handling of waste material is 
not a new idea; it has been successfully adopted in several centers of 
this country. Therefore, in advancing this idea this office is not 
sponsoring a move which is theoretical in nature but one which has 



DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 13 

stood the test of operation. The Board of Charities of the District 
of Columbia, a municipal body having jurisdiction over the inmates 
of the penal, correctional, and reformatory institutions of the District, 
will doubtless be faced with a serious problem in conjunction with 
the maintenance of the prison industries of these institutions. The 
recent laws, culminating in the abolition of the legal traffic in intoxi- 
cating liquors, is certain to have a marked influence on the number 
of convictions before the courts of the District. 

During the year 1918, there were sentenced to the local institu- 
tions 1,101 male whites. In 72 per cent of the cases the causation of 
their offense was liquor. During the same time, 1,852 males, col- 
ored, were sentenced, and in 53 per cent of the cases the offense was 
attributable to liquor or violations of laws and ordinances relative 
to the liquor traffic. The total male convictions and sentences dur- 
ing this period were 2,953, and liquor was the causation of the offense 
in 59 per cent of the cases. 

The population during 1918 was low, due to the universal military 
service law which carried many potential misdemeanant offenders 
into the Army. As a result, many of the prison industries of the 
institutions were run at less than capacity. The prohibition legisla- 
tion will but intensify this situation. It may be impossible to secure 
adequate personnel to maintain the agricultural and industrial work 
of the institutions. The activities are developed to handle the flow 
of the population of 1917. The future population may be 50 per 
cent less than the 1917 turnover; a situation which may mean an 
entire reconstruction of the methods of caring for this type of offender. 

It may be possible to find an industrial all-year employment for 
the inmates in conjunction with the farm, the brickyard, and the 
sawmill, now being operated by the prison authorities. The mild 
climate of this region permits outdoor activity practically the entire 
year. However, if it is found that the situation is so changed that 
new lines of activities must be developed, then the handling of waste 
paper in Government service would be a profitable and instructive 
industry to develop in conjunction with the work of the institutions. 

In developing such a program, authority would have to be granted 
to the Federal departments to turn this material over to the Board 
of Cliarities, which would likewise have to secure the necessary 
authority to enter into an agreement to collect, sort, and sell this 
material. To be successful, this system would have to be operated 
upon a cost-plus basis — the institution submitting a statement 
giving all elements of cost and receiving a certain percentage of the 
net revenue as a profit. Tiiis profit should become the capital fund 
of the Board of Charities, to be utilized in developing the work of the 
institution, and should not revert to the Treasury at the end of each 
fiscal year. 

In order to successfully operate such a service, the Board of Charities 
would have to be empowered to pay the prevailing rate of wages for 
this class of service, the pro rata cost of maintenance being deducted 
therefrom. This would be an element of cost and would be charged 
against the operation. By following the spirit of the Executive 
order of September 14, 1918, and establishing a wage fund, the 
Board of Charities would be enabled to estabhsh a prisoners' relief 



14 DISPOSAL OF WASTE PAPER IN GOVERNMEISTT SERVICE. 

fund, which would assist in increasing the efficiency of the worker 
and enable the prisoner to contribute to the maintenance of his 
dependent family, thereby decreasing the amount of dependency in 
the community. 

However, as the present situation in regard to the population of 
the prison is in such a condition of flux, it is doubtful if it is practicable 
at this time to develop such a program; but in case the population 
of the prison falls off to such a degree that some change in the present 
system will have to be inaugurated, this plan might be put in oper- 
ation, to the mutual benefit of the Government and the Board of 
Charities of the District of Columbia. 

PLAN 3. 

A competitive, cost-jdus system. — This last system should be adopted 
only in case it is found that the first or second plan can not be put 
into operation. Under this plan the Government would collect the 
paper and turn it over to a contractor equipped to handle the flow 
of the material, the contractor to sort and sell the material, receiving 
in payment for his services the actual cost of operation and a certain 
percentage of the net revenue. In developing this system, a number 
of safeguards must be developed so that the elements that enter 
into the cost of operation shall not be overloaded. The question of 
loading on heavy charges for interest, depreciation, and supervision 
as an element in the cost of operation must be given consideration, 
and a method devised so that each element would never be more 
than a certain percentage of the total cost of operation; and in 
addition it would be necessary to arrange that the actual payment 
for the material must be made direct to the United States Govern- 
ment, the payment of the cost to the contractor to be made upon 
properly audited statements. 

The sole advantage of this plan is that the material will be handled 
by an individual or firm thoroughly conversant with the trade, and 
who can therefore locate the best market. The fact that the profits 
which would accrue to the individual or firm would depend upon the 
net revenue would be an incentive to the individual or firm to secure 
the highest price for this material, at the same time decreasing the 
cost of operation to the lowest practicable point. 

However, the maintenance of the staff necessary to protect the 
interests of the United States would be an expense which, although it 
would be borne by the contractor and would be charged as an element 
of cost, would nevertheless be an item of expense which would be 
avoided under the first plan. Therefore it is the feeling of this 
office that a thorough investigation of the elements of cost both to 
the Government and to the commercial concerns in this field should 
be made so that a report, supplementary to the report of the Presi- 
dent's Commission on Economy and efficiency, can be made so that 
it will be possible to further develop and increase the efficiency of a 
systemi which was inaugurated some six years ago. 

H. L. Baldensperger, Chief. 

Secretary of Commerce. 



DISPOSAL OF WASTE PAPER IN GOVEENMEISTT SERVICE. 



15 



Table A. — Amount of material and selling price of same for the year 1918. 
I Statement of the Public Printer.) 



Class. 



Description. 



Shavini,'s from blanks and blank books 

Sliavint,'s f rom liook papers (white), monotype 
kej-board paper (white waste in rolls) . . ." 

Shavings from book papers (white and colored ) 
cover-paper trimmings, strawboard, and 
other binders" board trimmings 

Printed waste 

Manila clippings 

Wrapping waste (principally from roll paper), 
waste sweepings, book cloth, and buckram 
sweepings 

Internal-revenue stamp st ubs in books 

Cuttings from strawboard, pulpljoard, tar 
board, and other Ijinders' Ijoards 

Twine and rope from bundles and sweepings. 

Discarded publications, mutilated 

Discarded account books oi ledgers, mutilated 

Cotton (bleached and unbleached), canvas 
(white and colored), linen canvas (un- 
bleached), and cotton drilling (drab) scraps 

Total 



Price 

per 

pound. 



.0225 
.021 



.013 
.014 
.02 



.0055 
.008 

.005 
.02 
.01 
.016 



Pounds. 



243,484 
1,604,852 



2,179,357 
2,195,363 

4,827 



6,338,268 
14,990 

750,380 
9,824 

401,153 
2,518 



1,222 



13,746,238 



Per 
cent. 



1.77 
11.67 



15.85 

15.97 

.04 



.46. 11 
.11 

5.46 
.07 

2.92 
.02 



100. 00 



Price 
received. 



S5, 478. 39 
33, 701. 89 



28,331.64 

30, 735. OS 

96.54 



34,860.47 
119.92 

3,751.90 

196. 48 

4,011.53 

40.28 



31. 



141,355.89 



Per 

cent. 



3.88 
23.84 



20.04 

21. 75 

.07 



24.66 
.08 

2.65 
.14 

2.84 
.03 



100. 00 



Note. — Last three columns computed in Waste Reclamation Service. 

Table B. — Monthly quotations and average yearly price, principal lines of uaste-paper 

stock. 

[Compiled from the Waste Trade Journal.] 



Trade specifications. 



Ledger and writing 

Box-board cuttings 

No. 1 hard white shavings.. 
No. 1 soft white shavings... 
Heavy books and magazines 

New manila cuttings 

Bogus wrappers , 

Mixed strings 

No. 1 cotton canvas 



$1. .50 

.45 
3.15 
2.15 
1.05 
2.15 

..50 
1.90 



$1..50 
.50 
3.15 
2.25 
1.10 
1.90 
.50 
1.90 



4.80 4.80 



H. ,50 
..50 
3.25 
2.25 
1.10 
1.90 
50! 



$1.50 
.45 
3. 35 
2. 25 
1.05 
1.90 
.45 



1.90i 2.00 
4.80 4.80 



$1.50 SI. 90 

. 45 . ,55 

3.50 3.75 



2. 25 
l.Oo 
1.90 
.55 
2.00 
4.80 



2.70 

1.0.2 

2.00 

.60 

2.25 

5.00 



52. 2') 
.60 
4.75 
4.00 
1.50 
2.00 
.70 
2.50 
.5.00 



$2.25 
.70 
4.80 
4.25 
1..50 
2.00 
.70 
2. ,50 
5.00 



$2. 25 
.90 
.5.25 
4.40 
1.90 
2.00 
1.15 
3.00 
5.00 



1.05 
5.75 
4.75 
2.10 
2. 25 
1.25 
3.35 
5.00 



$2.75 
1.05 
6.00 
.5.25 
2.15 
2.25 
1.15 
3.75 
5.00 



$2 
.80 
5.60 
4.60 
1.45 
2.25 
.95 
3.25 
4.75 



G3.S 



$2. 033 

.666 
4.358 
3. 425 
1.416 
2.041 

. 75 
2. 525 
4.895 



Table C. — Comparison of selling price under Government contract and average yearly 

price of waste material 

♦ 1918. 



Government 
schedule. 


Waste trade specifications. 


Govern- 
ment 
price per 
pound. 


Waste 

trade 

average 

price per 

pound. 


Loss per 
pound. 


Loss per 
volume. 


Percent- 
age of 
total loss. 


Class 1 . . . 


No. 1 hard white shavings 

No. 1 soft white shavings 


$0. 0225 
.021 
.013 

.014 

.02 

.0055 

.008 

.005 

.02 

.01 

.016 

.026 


$0,043 
.034 
.034 

.014 

.02 

. 0075 

.02 

.006 

.02 

.014 

.02 

.048 


$0. 0205 
.013 
.021 


$4,991,422 
20, 863. 076 
45,766.497 


5.746 


Class 2. 


24 017 


Class 3 


No. 1 hard white and No. 1 soft 

white shavings, mixed. 
No. 1 book stocK 


52. 685 


Class4 




Class 5 


Manila cuttings 








Class 6 . . . 




.002 
.012 
.001 


12,676.536 
179. 88 
750. 38 


14. 592 


Class 7 




.207 


Class 8... 


Box-board cutting 


.864 


Class 9 


Mixed strings 




Class 10 


No. 1 book stock 


.004 1.604.612 


1.847 


Class 11 




.004 
.022 


10. 072 
26.884 


.011 


Class 12 


No. 1 cotton canvas 


.031 




Total 












86, 869. 359 


100.000 








1 





16 



DISPOSAL OF WASTE PAPEE IF GOVERNMElsrT SEEVICE. 



Table D. — Loss per month — Average volume Government contract in comparison with 

trade quotations. 



Gov- 
ern- 
ment 
sched- 
ule. 


Trade classification. 


Janu- 
ary. 


Febru- 
ary. 


March. 


April. 


May. 


June. 


July. 


Class 1 


No. 1 hard white shav- 
ings. 

No. 1 soft white shavings 

No. 1 hard white shav- 
ings and No 2 soft 
shavings, mixed. 

No. 1 book stock 

Manila cuttings 


$1S2. 612 


$182. 612 

133. 737 
1,634.517 

*548. 840 
*.402 

*264. 094 
8.744 


$202. 903 

133. 737 
1,634.517 

*548. 840 
*.402 

*264. 094 
8.744 


$223. 193 

133. 737 
1,634.517 

*731. 787 
*.402 

*528. 189 

8.744 

*62. 531 


$253. 629 

133. 737 
1,634.517 

*731. 787 
*.402 


$304. 354 

802. 422 
2, 542. 583 

*731. 787 


$507. 258 
2.541.015 


3 

4 
5 


1,452.904 

*731.787 

*.402 

*264. 094 

8.744 

*62. 531 

*9.824 


4,903.553 
182. 946 


6 


Bogus wrappers 

High-grade writing 

Box-board cutting 


264. 094 
13. 740 


792. 284 


7 
8 


8.744 
*62. 531 


17.488 
62. 531 


g 


*9.824 

33.429 

*.209 

4.616 


*9.824 

33. 429 

*.209 

4.616 


19. 648 


49. 120 


10 


No 1 book stock 






167. 147 


11 
12 


I -edgers and writings — 
No. 1 cotton canvas 

Total 


*.209 
4.616 


*.209 
4.616 


*.209 
4.616 


.627 
5.035 


1.258 
5.035 




































Gov- 
ern- 
ment 
sched- 
ule. 


Trade classification. 


August. 


Septem- 
ber. 


October. 


Novem- 
ber. 


Decem- 
ber. 


Total. 


Per 
cent. 


Clas3l 

2 
3 

4 


No. 1 hard white shav- 
ings. 

No. 1 soft white shavings 

No. 1 hard white shav- 
ings and No. 2 soft 
shavings, mixed. 

No. 1 book stock 


$517. 403 

2, 808. 49 
5, 266. 779 

182. 946 


$608. 709 

3,075.966 
5,630.005 

914. 734 


$710. 161 

3,467.179 
6, 164. 824 

1,280.628 

.804 

3, 697. 323 

23. 734 

312. 655 

127. 712 

367. 723 

2.308 

5. 035 


$760. 887 

4, 145. 867 
7,082.910 

1,280.628 

.804 

3,169.134 

23. 734 

312. 655 

167. 008 

367. 723 

2.308 

5.035 


$679. 726 

3,343.461 
5,993.331 


$5, 133. 447 

20, 719. 348 

45, 574. 957 

*182. 946 

.402 

12,676.528 

181. 126 

1,063.027 

659. 264 

1, 573. 179 

10.28 

57. 696 


5.8S 

23. 63 
51.99 


5 
g 


.804 

2, 112. 756 

23. 734 

187. 593 

177. 888 

133. 717 

2.308 

4.406 






792. 284 
17. 488 
125. 062 
49. 120 
169. 147 
1.258 
5.035 


3, 169. 134 

17. 488 

250. 124 

98.24 

300. 864 

1.258 

5.035 


14.45 


7 
8 
9 


High-grade writing 

Box-board cutting 


.22 
1.22 
.75 


10 
11 
12 


No. 1 book stock 

I edgers and writings 

No. 1 cotton canvas 

Total 


1.79 
.01 
.07 














87,466.308 


100. 00' 



















Note. — Percentage classes 4 and 5 omitted. * indicates increase over trades price. Unless otherwise 
indicated figures show loss. 

Government Printing Office, 

WasUngton, May 31, 1919. 

Sir: I have the honor to acknowledge receipt of a copy of the report 
of Mr. H. L. Baldensperger on the handhng and disposal of waste 
paper in Government service, and in reply have to say that the 
treatment of the subject is very commendable and as exhaustive 
as could be prepared under the existing complex conditions. The 
author has, in my judgment, been laboring at a great disadvantage 
in not having exact data upon which to base his computations and 
has, therefore, been compelled to overestimate rather than under- 
estimate the cost of handling as well as the benefits accruing to the 
Government by the present system. 

The subject of waste paper in the Government Printing Office has 
been frequently considered by Public Printers during the past 12 
years and all of the phases of handling this class of waste described 
in the report have been given careful consideration, except the third 
plan of using convict labor, which is the extreme not resorted tO' 



i 



DISPOSAL OF WASTE PAPEK IN GOVERNMENT SERVICE. 17 

because we especially provide in our contracts against the use of 
convict labor in the manufacture of articles used in our production, 
and I do not feel at this time that it should be resorted to, even in the 
handling of waste paper at an increase of projfit to the Government. 

It is not clear to me why the author used the years 1912 and 1918 
for comparison, as in the first instance the prices were very low, and 
in the second very high. Attention is also called to the fact that 
our specifications provide for itemized quotations, with the privilege 
of awarding any one or all of the items, but, on account of the fact 
that our storage and baling facilities are limited, it is necessary to 
have the hauling done each day, and if awards were made on items 
separately, there would probably be no bids received or the prices so 
low on certain items that there would become an accumulation 
requiring storage space. It has, therefore, been deemend advisable 
to make the award in the aggregate in order to assure daily removal 
of all of the different classes of waste. This method is acknowledged 
to be one not productive of the greatest amount of revenue but under 
existing conditions the most satisfactory, as it enables the premises 
to be kept clear and free from accumulations of dangerous waste. 
Efforts have also been made to have preliminary sorting of different 
classes of paper so that greater revenue could be obtained. The 
comptroller was also asked for a decision a few years ago whereby 
the cost of handling the departmental waste could be deducted and 
only the net profits turned into miscellaneous receipts. This not 
being favorable, the various departments have been relieved of 
expense in connection with the accumulations, and the Government 
Printing Office has endeavored to furnished containers in which to 
pack the paper for delivery and remove it and bale it at an additional 
cost to public printing and binding work. 

The estimate of the author of the report covering the cost of hauling 
is regarded as high, because our computations show that w^e are able 
to do the hauling for approximately 5 cents per hundredweight. 
The cause of the difference in the estimated cost of operating in 1912 
as compared with 1918 is probably due to the fact that in 1912 the 
problem was new and in 1918 we had profited by the experience of 
the intervening years. 

Without entering into a discussion of the report paragraph by para- 
graph, I will say that plan No. 1 appears to be the most feasible 
method for disposing of the waste accumulations of the various 
departments and the Government Printing Office, and the probable 
reason why no change in the present system has been attempted is 
because of the necessity of repealing certain statutes and the enact- 
ment of more liberal provisions which would enable the proper 
classification, sorting, and sales of waste material. It is probably 
not improper to note also at this time that there are a great many 
statutes affecting the administrative affairs of different departments 
as well as the Government Printing Office, which were made at a time 
and under conditions which doubtless made their enactment neces- 
sary, but the United States Government has now grown to such pro- 
portions as would seem to me a proper justification for a revision and 
expansion of administrative functions. The handling of waste paper 
is only one of the conditions to which attention has been drawn, and 
this office would be very much pleased to cooperate with your depart- 

H. Doc. 87, 66-1 2 



18 DISPOSAL OF WASTE PAPEK IN GOVERNMENT SERVICE. 

ment and others in the adoption of more economical, efficient, and 
broader plans for the conduct of departmental business. We have 
made a study of many of these problems for several years and believe 
that centralization in the handling of manufacturing production is 
one of the strongest evidences of progress. This we have endeavored 
to do to the fullest extent that existing statutes would permit. 

It may not be unwise to suggest that the handling of waste paper 
by the Government Printing Office could be done without appropria- 
tion or expense to the Government by allowing the expenses for such 
work and equipment to be deducted from the revenues obtained by 
the sales and turning the net proceeds into the Treasury. The prob- 
lem would certainly carry itself with a good profit, and when the 
matter becomes one of serious consideration for definite action I 
would be pleased to designate a representative from this office to 
confer with representatives from your department and other depart- 
ments, with a view to formulating the most reasonable plans that 
will systematize and develop these and other similar activities for the 
benefit of the Government. 
Respectfully, 

Cornelius Ford, 

Public Printer. 

The honorable the Secretary of Commerce, 

Washington, D. C. 



Department of Commerce, 

Washington, June 6, 1919. 

Dear Sir: I wish to acknowledge receipt of your recent com- 
munication relative to the report on the handling and disposal of 
waste paper in Government service, 'which was prepared by the 
Waste-Reclamation Service of this department and submitted to 
you for consideration and comment. 

Relative to your first point that it is not clear why a comparison 
between the years 1912 and 1918 was made, advise that this was 
done in order to show the benefits which accrued under the present 
system in opposition to the system in vogue in 1912, when each 
department was charged with the function of the disposal of its 
waste paper. It is true, and I believe that the report develops this 
point adequately, that the increase in price of waste paper is responsi- 
ble in part for the greater return under the centralized system of 
collection, sorting, and sale; but the price increase has not been 
sufficient to result in any such saving as has been effected by your 
administration of this function. 

I am certain that unless you are granted adequate facilities you 
will not be enabled to develop a system of sale by accumulation 
rather than by contract, and will be unable to follow a method which 
is successfully practiced b\ the Salvage Division of the United 
States Army. The fact that you are forced to stipulate in your 
contract that certain materials must be mutilated on the premises 
by the contractor precludes the possibility of securing bids from 
any but local dealers, thereby limiting the field of competition. 
Were you in a position to perform this function and prepare the 
material for sale, I am certain that you would be enabled to secure 
a far greater return. 



DISPOSAL OF WASTE PAPER IN GOVERNMENT SERVICE. 19 

Relative to your point conoerning the oost of hauling the material, 
I advise that I was certain that our estimates would be higher than 
your computation, because we included the element of depreciation 
and interest on the investment in developing the estimate of the 
daily cost of maintaining the collective service. I imagine that in 
case your suggestion of charging the oost of the service against the 
revenue were to be adopted it would be necessary to charge oflf these 
items in order to arrive at a correct cost accounting. 

There is no doubt in my mind that some system whereby the cost 
of operating this service would not be charged to the cost of the print- 
ing and binding work of your office should be developed: and your 
suggestion that the cost of operation might be deducted from the 
revenue, thereby continuing the service from year to year without 
appropriation, is well worth consideration on the part of competent 
authority. 

I am heartily in accord with your viewpoint that there are many 
statutes affecting the administrative affairs of the different executive 
departments, as well as your office, which were made at a time and 
under conditions which made their enactment necessary, but that 
subsequent development of the governmental functions renders it 
necessary for the revision and expansion of certain administrative 
functions in order to secure the greatest degree of efficiency. It was 
with that end in view that we made this preliminary survey of this 
function, and in accordance with that idea I am forwarding this 
report, together with your communication of May 31, 1919, and this 
reply thereto, to the Speaker of the House of Representatives for 
his consideration. 

In case you care to make any further suggestions or recommenda- 
tions in regard to this matter, may I suggest that you submit the 
same to the Speaker of the House of Representatives or to this 
department, which I will gladly forward to the Speaker for his 
consideration. 

Very truly, yours, 

William C, Redfield, Secretary. 

Hon. Cornelius Ford, 

Public Printer, Washington, D. C. 

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